Portugal's TAP expects EU to approve restructuring plan before Christmas

Portugal’s ailing flag carrier TAP said on Tuesday it expects the EC to approve its E3.2b restructuring plan, which has been under investigation over its compliance with EU rules, by Christmas. EU antitrust regulators have been examining since mid-July whether the plan, which involves around 2,000 job cuts and pay cuts of up to 25%, is proportionate and complies with state aid rules, and whether it affects competition. “There has been a deep investigation... the case has been closed and we have answered to all questions,” TAP’s CE Christine Ourmieres-Widener told a news conference. “We are now in final discussions and our expectation... is to have the approval this side of Christmas,” she added. The airline, which is 72.5% controlled by the Portuguese state, was working closely with the government through the process, she said. The CEO said the group was “focused on delivering the plan” and had already cut 2,000 jobs, taking its workforce to 7,000. “We are waiting for an approval (but) that doesn’t mean the work hasn’t started yet,” she said. TAP posted losses of E1.2b in 2020 as passenger numbers fell due to the impact of the COVID-19 pandemic, but reported a slight improvement in the first half of this year as travel rules were eased.<br/>